Shares of Physicians Realty (NYSE:DOC) Trust rose by 2% to $11.30 following the announcement of an all-stock merger with Healthpeak Properties (NYSE:PEAK). This merger will result in a $21 billion healthcare property operator overseeing clinics, hospitals, and surgery centers. The deal values Physicians at approximately $2.64 billion, with each of its shares converting into 0.674 of a Healthpeak share.
However, Healthpeak's shares saw a decline of around 2% to $16.15 despite the news of the merger. The year-to-date performance shows DOC shares down by approximately 21% and PEAK shares down by around 36%.
The new company will retain the Healthpeak Properties name and will trade under the ticker symbol "DOC" on the NYSE. The merger is expected to be finalized in the first half of 2024.
In related news, Healthcare Realty (NYSE: NYSE:HR), a leading REIT in the industry, oversees medical outpatient buildings predominantly around market-leading hospital campuses. It holds over 700 properties and 40 million square feet within 15 growth markets. The company's growth strategy is primarily based on strategic property acquisitions and developments.
InvestingPro Insights
Drawing from InvestingPro's real-time data and tips, we've identified key insights to further understand the context of these companies' performance.
For Healthpeak Properties (PEAK), InvestingPro Tips reveal that the stock has been in oversold territory and has fared poorly over the last month, with the price falling significantly over the last three months. Despite these challenges, the company has a high earnings quality, with free cash flow exceeding net income, and has maintained dividend payments for 39 consecutive years.
Physicians Realty Trust (DOC) also shows high earnings quality, with free cash flow exceeding net income. The company's stock is also in oversold territory, and the price has fallen significantly over the last three months. However, analysts predict the company will be profitable this year, and it has consistently increasing earnings per share.
InvestingPro Data indicates that Healthpeak Properties has a market cap (adjusted) of 8850M USD and a P/E Ratio of 16.22 as of Q2 2023. The company's revenue growth was 6.82% for the last twelve months as of Q2 2023.
Physicians Realty Trust, on the other hand, has a market cap (adjusted) of 2730M USD and a P/E Ratio of 26.35 as of Q2 2023. The company's revenue growth was 8.12% for the last twelve months as of Q2 2023.
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